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Tower wins 2008 order for thousands of wafers per month

September 20, 2007 //

Struggling foundry Tower Semiconductor Ltd. (Migdal Haemek, Israel) has won an order from an unnamed U.S. integrated device manufacturer (IDM) for thousands of wafers of 130-nm chips worth millions of dollars per month.


LONDON — Struggling foundry Tower Semiconductor Ltd. (Migdal Haemek, Israel) has won an order from an unnamed U.S. integrated device manufacturer (IDM) for thousands of wafers of 130-nm chips worth millions of dollars per month.

Under the deal, manufacturing process technology is set to be transferred to Fab2 during the coming several quarters after which Tower expects to manufacture between five and eight thousand wafers-per-month, utilizing the new tools it is purchasing from companies such as Advanced Micro Devices Inc. and Intel Corp.

High-volume production shipments are expected to commence towards the end of 2008 at which point Tower said the U.S. IDM would likely become one of Tower's top three customers.

Tower did not name the customer. One report in Israel said the customer is Motorola Inc. although Motorola is not an IDM. This could be explained if Motorola, a manufacturer of mobile phones, is the IDM's customer. Motorola used to manufacture ICs but spun-off its chip division to form Freescale Semiconductor Inc. (Austin, Texas).

"We are pleased, and feel it quite an achievement, that an IDM of this size, capability and reputation chose Tower to be its foundry partner for a critical and projected very large volume family of products," said Tower's CEO, Russell Ellwanger, in a statement. "We are excited that this product line will utilize our expanded manufacturing capacity in the advanced 0.13-micron technology. We are in advanced stages of closing the deals to acquire the additional tools needed to increase our capacity in Fab2 to a level that will meet this demand."

Related articles:

Tower closes credit deals for Fab2 ramp-up

Tower still in the red after raising revenues

Tower helps startup make rad-hard microcontroller



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